Savannah morning news. [volume] (Savannah) 1868-1887, 1887-03-30
THE NEUTRALITY-SUSPICIOUS.

Some Additional Points About the
Cotton Brokerage Business" here.
Editor Morning NeoCs; Since my return
home after an absence of some two weeks
my attention has been called to an iater-
view with Gen. Z. p. Alexander, Presi-
dent of the Central Railroad and Banking
Company, published in your issue ~
March %, IN which he says: ~
The Central tried the experiment Of but.1
ing up Port Royal. and put large elevMM
and cotton compress there and built eXf#kl
slve wharves, but trade would not go thefs.
Why, the last administration even went into
the cotton brokerage business, bought cotton,
shipped 1T to Port ROYAL, compressed il and
paid ships to come there Tor it. The expert
ment cost the company $4,000, every penny OF
which was thrown away.
This is not correct statement. ! beg
to submit the facts: The Central railroad,
under the 'last administration" eX-
pended no money to build up Port Royal.
The Board OF Directors ofthe Port Royal
and Augusta Railroad Company in
March, 1879, was composed of the follow
ing gentlemen: d. G. Wilson, President;
K. p. Alexander, G. Fl. Phipizy, D. F..
Appleton. F. II. Appleton, II. a. Robbins.
II. ii. Body, A. Marcus, c. L. Rubs-
man, Directors. Gen. Alexander contin-
ued member of the board until Feb. %.
1881.
On March 81, 1879, a resolution of the
Port Royal and Augusta board au-
thorlzed subscription of $50. 600 to the
STOCK OF the then proposed compress CON-
panY, and II the money could be raised
by the sale OF bonds $1,000 more was au-
thorized to be subscribed toward the
erection OF grain elevator, the latter
subscription on the further condition
that other parties subscribe the rem ain
IN al al
On Feb %, 1880, a resolution was passed
removing the restrictions concerning the
subscription toward building the eleva-
tor.
On May %, 1880, a resolution was
passed 'that the President be authorized
TO join with the Compress Company IN
chartering vessels for Europe
In the annual report OF President viii
son for the year ending June so, 1851, he
says:
As mentioned In last report, we had In
duced the Augusta and Port Royal Com press
Company to erect large press at Port Roy al,
which mas worked well, and adde1 greatly to
increase Of cotton shipments over oar line,
direct to Port Royal, and seyera large steam
ships have been loaded this season. This
company, joining with the compress company
in cnarterlng these steamers By the lump
sum, as 1t was found that THIS was the only
way TO induce vessels TO come to Il new port
for cargo. A steamer came to Port Royal
during teDfuafy, WDen cotton shipments
were difficult to secure, and little cotton
Offering. AT a meeting of directors OF press
| company it was proposed that they should pur-
| chase cotton to hllup snip, and thereby save
! demurrage, which threatened to be very
| heavy unless some such effort was made 10
| secure cotton. The railway being party to
| the charter, 1t was considered that as "a
majority was in favor OF purchasing cotton
that we must be governed by their decision.
| This l opposed, but agreed to wire our direc-
| tors for advice. The reply came sustaining
| the views held by the directors of press COM
pany, that as we were party TO the charter,
| we were bound to do that when seemed best
| for the interest of the charterer5. We, there
fore, joined the press company in the pur-
chase of about !, GOO bales cotton.
The foregoing shows that Gen. Alex
| ander was a member of the Board OF
Directors of the Port Royal and Augusta
railroad while that company vas en-
| deayorjng to "build up Port Royal" and
when all the investments, every penny
of VI hich was thrown away" were author
| lied, and as he ceased to be member of
the board late in February, 1881, ii seems
| fair to assume that he was one of the
members consentlng by telegraph for the
| company TO go Into the cotton brokerage
business"
The Central railroad had nothing to do
| with the management of the Port Royal
and Augusta railroad until Gen. Alex
ander had resigned from its board and all
the obligations enumerated had been in
CURED. w. G. RAOUL.